Buybacks

Generally, recyclables are either coUected at curbside or deposited by consumers at various types of drop-off locations, such as local recycling centers, community service clubs, dealers, and commercial buyback centers. Curbside coUections of recyclables can be accompUshed either in conjunction with the pickup of aU MSW or as a separate activity. Co-coUection systems range from complete commingling of aU waste for later separation at a mixed waste processing facility to transporting essentially source-separated recyclables in the same tmck as MSW. 

Note that the financial feasibility depends on having a sufficient utility buyback rate. For instance, if the buy-back rate had been 0.04 instead of 0,064 per kilowatt-hour, then the revenue per tire would have been only 0.98. This would yield a profit of only 0.95 per tire. Under this lower buy-back rate the annual gross profit would be only 9 million, and the payback period would be over 11 years. 

Low utility buyback ratee for electricity In eany regione of the U.S. 

Creation of linkages with marketing agencies/industry for assurance of buyback arrangements and certification of quality materials/products... 

This chapter defines the term bondholder value and contrasts it with shareholder value. In a second step, the different viewpoints of shareholders and bondholders are examined respectively. The discussion of both parties conflicts of interests concentrates on capital structure, share buybacks, dividend policy, and corporate strategy. As there are also similarities between shareholders and bondholders, instruments of the shareholder value concept that can be used to create bondholder value are described. That includes investor relations, risk management and the balanced scorecard. 

Conflicts of interest between shareholders and bondholders often relate to capital structure, share buybacks or dividend policy, and strategy. This section discusses these items. 

A share buyback can be an advantage for bondholders, if a low stock price is lifted, thus reducing the danger of a takeover and a change of management. A stock buyback lowers future dividend payments. This may be advantageous for bondholders if there are, for example, high dividends on preferred stock which are de facto paid independently of the economic situation and thereby have the character of a fixed interest rate. Sometimes a share buyback can turn out to be more pleasant than invest-... 

The effect of share buybacks on bondholder value cannot be answered unequivocally. Although there is a risk of wealth transfer from creditors to shareholders, an increased stock price can for example avoid a takeover of the company. Empirical studies come to contradictory results. 

To reach this minimum amount as soon as possible as well as to reduce the level of their liabilities, smoothen their debt s redemption profile or improve the liquidity of selected issues, many European Debt Agencies carry out bond exchange auctions and/or buybacks. These operations... 

A weaker than expected fiscal performance could cause the reduction or even the total disappearance of any scheduled buyback programs, as happened in France and Spain in 2002, which bought back a noticeably lower amount of bonds than previously announced in their funding programs. 

The procedure for these buybacks could either be via OTC purchases or preannounced buyback windows, normally restricted to primary dealers. 

In this regard, it is also important to add to the amounts due to mature the possible buybacks or exchange auctions. These targeted bonds would tend to trade rich as the market would assume that the Treasury buying back these bonds could be keen to pay a premium to retire the largest possible amount of those bonds. 

In 2000, the SNDO decided to conduct monthly auctions. The SNDO focused on larger issue sizes in coupon linkers, which was to be achieved by outright auctions and switches from zero-coupon linkers. In early 2002, the SNDO held buybacks in the 3002, 0% 2004, to facilitate issuance because the projected budget surplus negated the need for new issuance. 

We next consider the sell/buyback, which is economically identical to the classic repo but is described under different cash flow terms. 

In addition to classic repo there exists sell/buyback. A sell/buyback is defined as an outright sale of a bond on the value date, and an outright repurchase of that bond for value on a forward date. The cash flows therefore become a sale of the bond at a spot price, followed by repur-... 

A sell/buyback is a spot sale and forward repurchase of bonds transacted simultaneously, and the repo rate is not explicit, but is implied in the forward price. Any coupon payments during the term are paid to the seller however, this is done through incorporation into the forward price, so the seller will not receive it immediately, but on termination. This is a disadvantage when compared to classic repo. However there will be compensation payable if a coupon is not handed over straight away, usually at... 

The forward price is calculated only for the purpose of incorporating repo interest it should not he confused with a forward interest rate, which is the interest rate for a term starting in the future and which is calculated from a spot interest rate. Nor should it be taken to he an indication of what the market price of the hond might be at the time of trade termination, the price of which could differ greatly from the sell/buyback forward price. 

Note that in some markets the term repo is used to describe what are in fact sell/buybacks. The Italian market is a good example of where this convention is followed. 

A general diagram for the sell/buyback is given in Exhibit 10.8. 

We use the same terms of trade given in Exhibit 10.3 earlier but this time the trade is a sell/buyback. In a sell/buyback we require the forward price on termination, and the difference between the spot and forward price incorporates the effects of repo interest. It is important to note that this forward price has nothing to with the actual market price of the collateral at the time of forward trade. It is simply a way of allowing for the repo interest that is the key factor in the trade. Thus in... 

The Bank of England discourages sell/buybacks in gilt repo and it is unusual, if not unheard of, to observe them in this market. However, we use these terms of trade for comparison purposes with the classic repo example given in the previous section. The procedure and the terms of the trade would be identical in other markets such as Italy and Portugal where sell/buyback trades are the norm. In the Italian market for example, sell/buybacks are actually called repos. ... 

EXHIBIT 10.9 Bloomberg Screen BSR for Sell/Buyback Trade in 5.75% 2009, Trade Date 5 July 2000... 

Bloomberg users access a different screen for sell/buybacks, which is BSR. This is shown in Exhibit 10.9. Entering in the terms of the trade, we see from Exhibit 10.9 that the forward price is 104.605876. How-... 

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